Investors are competing fiercely for retail assets in tightly held suburban strips across Melbourne, including the outer bayside region, with 12 parties bidding at auction for adjoining properties Aspendale which sold for a substantial 43% above reserve.
Offered for the first time in 60 years, the property comprises two shops that were offered separately at auction.
Both properties have a 77sqm building on 195sqm of land, with a large public car park at the rear. Number 133 is leased to Sammy’s Pizza Boys until 2023 with two further terms of three years and returning $21,480 per annum plus outgoings, while number 134 was offered vacant.
“We received outstanding interest from investors and developers for these two well-presented assets, which are positioned in a tightly held suburban strip with minimal vacancies and excellent future upside,” Fisher said.
“The depth of enquiry, which ultimately led to 12 bidders at auction and a sale price 43% above reserve, reflected the property’s strong fundamentals, and the ongoing appetite investors have for well-located suburban retail strip assets.
Talbot said the strip’s tightly held nature and strong performance was evident in the vendors having held the asset for six decades.
The popular neighbourhood strip includes Australia Post, Foodworks, Aspendale Quality Meats, and a number of other popular local eateries and traders, and benefits from the high volume of pedestrian traffic generated from an established local catchment and its location opposition the train station’s entrance.
The transaction follows Fitzroys’ recent success in August when a vacant freehold corner building in Dromana was also sold at auction for a staggering $2.22 million.